Cold Winter Lifts Natural Gas Prices

Return of Winter Catches Natural Gas Bears Off Guard

After months of trading in a tight range between $2.75 and $3.10 per MMBtu, natural gas prices started to rise in late December with that momentum carrying into 2018. On January 23, natural gas prices hit an intra-day high of $3.62.

After two historically warn winters, a bout of exceptionally cold weather sent U.S. naturally gas prices considerably higher from their December lows near $2.65. Natural gas accounts for around 30% of residential usage in the winter versus just five percent in the summer.

The deep freeze also boosted beleaguered natural gas prices in Canada. Between Christmas and New Year, AECO, Alberta’s natural gas price benchmark, soared 72% from $2.50 per thousand cubic feet to $4.30.

Sustained cold weather and rising natural gas prices helped lift natural gas stocks. After trading sideways for months, BHP Billiton Limited’s (NYSE:BHP) share price got a lift in early December and, as of the end of January, 2018, it has advanced more than 22%. Over the same period of time, Phillips 66’s (NYSE:PSX) share price has increased nearly eight percent.

Admittedly, it is going to take a lot of cold weather to put a dent in storage levels and increase natural gas prices for the first half of the year. As we get closer to the summer months, investors, hedge funds, and other managers could become increasingly bearish.

There might be more reason to be bearish on natural gas prices over the long-term. According to the U.S. Department of Energy, natural gas production is expected to exceed consumption over the next two years.1

That has not happened in more than half a century and it should drive down natural gas prices. But there are many, many unexpected and unforeseen events that could propel natural gas prices higher. The key is learning how to read the markets.

Learn-To-Trade.com, Canada’s Leader in Stock Market Trading Courses

There are a lot of ways to invest in a commodity like natural gas (or gold, silver, copper, crude oil, wheat, coffee, cotton, sugar, etc). Two of the most popular ways include investing in natural gas stocks and investing in futures. Virtually every investor understands the basics of trading stocks. Investing in futures and predicting commodity prices is less well known. But trading futures can be even more lucrative. The licensed trading professionals at Learn-To-Trade.com can help teach you how to trade futures confidently and profit consistently.

Learn-To-Trade.com is Canada’s oldest and leading provider of stock market trading courses. Whether you’re a seasoned pro or novice trader, the experts at Learn-To-Trade.com can show you how to profit no matter what the markets are doing.

In fact, Learn-To-Trade.com is who the industry professionals turn to. Learn-To-Trade.com Inc.’s instructors are also educators for the Toronto Montreal Exchange, through which its instructors host educational sessions for major banks across Canada.

At Learn-To-Trade.com, we understand that traders learn at different paces and have different needs, that’s why we provide a unique, Lifetime Membership that allows you to re-attend any part of the program as often as you’d like.

To learn more about Learn-To-Trade.com’s stock market trading course, contact us at 416-510-5560 or by e-mail at info@learn-to-trade.com.

Sources:

  1. “EIA expects 2018 and 2019 natural gas prices to remain relatively flat,” U.S. Energy Information Administration, January 25, 2018; https://www.eia.gov/todayinenergy/detail.php?id=34672

Photo Credit: iStock.com/Gumpanat

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George Karpouzis is the co-founder of Learn-to-Trade and has been personally providing education and mentoring to over 3000 members since 1999. George has been trading in the stocks, options, futures and forex markets using technical analysis since 1986. With the help of advancements in trading technology the Learn To Trade program is now accessible worldwide. His background and passion for teaching brings an invaluable asset to our members. George is constantly striving to improve the program content and develop new strategic relationships for the benefit of the members. Add me to your G+

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Don’t hesitate jump into it right now. You will be glad you did!

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I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

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Steven R

I wanted to let you know that I had taken your course in the fall of 2013. I took your advice and used demo accounts for the last quarter of 2013. I switched to real money trading account in the Near Year, when I finally felt comfortable. Following the lessons taught to me by you (don’t jump on a moving train, peaks and valleys, EMA..etc), I wanted to let you know that I have been successful beyond my own expectations. Thank you very much – taking the Learn-to-Trade course was, by far, the best decision I made in my business career.

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The past options and forex tutorials taught by George were very helpful. I find these tutorials invaluable for a busy person like myself. I was able to keep myself up to date and on track ready to continue the learning process. Thanks for all the help and keep up the great work.

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Learn to Trade provided me with strategy, self-confidence and discipline

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I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

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Shelley P

I took your course in 2008 and loved it. Since then I have been using what I learned at Learn-to-Trade to nicely supplement my pension income. Wanting a carefree type of trading, I have for the most part just sold options and made a monthly income which is a nice addition to my pension. I know I never would have made this kind of trading income without Learn-to-Trade. Thank you!

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Hi George, I just wanted to thank you again for the amazing work on the tutorials especially Options trading.   Prior to joining, I had underestimated the quality of the trainings but they certainly far exceeded my expectations. Only I wish I’d found you 5-10 years ago!
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